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Foreign investments galore in India’s warehousing market

June 2019

Many large international players are now actively seeking entry points in the India warehousing market. “The liquidity infusion by global investors is prompting the market to develop more Grade-A warehousing space,” says Chandranath Dey, Senior Director and Head - Industrial Consulting and Supply Chain Consulting, JLL India. “Increased capital will ensure more quality space is being built to fulfil the demand for warehouses near emerging urban areas across the country.”

Foreign investors are entering the sector through investment platforms with the mandate of investing in industrial warehousing parks across the major cities of the country, says the ICRA report. Often, this is done by partnering with a local developer or, in some cases, a global warehousing operator. Notably, the total amount of equity commitments to such platforms is at least $ 2.5 billion over the past two years. Such investment commitments can support assets under management of over 130 million sq ft, according to ICRA estimates. This is almost double the size of the current estimated stock of Grade-A industrial warehousing in India and about 10 times the operational portfolio of such platforms currently.

Marquee
Warehousing Platform Deals

Investor

Investee

Investment
(US $ million)

Year

CPPIB**

IndoSpace

1,300

2017

Ascendas

Firstspace

600

2017

Macquire
+ Ivanhoe’

Logos
+ Assetz

400

2017

GLP

Everstone

500

2018

Allianz

ESR

1,000

2018

GLP

Indospace

700

2018

Temasek
Holding

Ascendas
Firstspace

300

2018

Morgan
Stanley

KSH

50

2019

Source:
JLL India
**3 stage deals totalling $1.3 bn with $500 mn
invested in JV IndoSpace Core, $700 mn for buying additional
industrial and logistics parks and an additional $100 mn investment
in IndoSpace Fund III
*Some of the deals are commitments for
investment and the funds may be deployed over a period in tranches.
The deal details has been collected from media sources and JLL has
not verified specific components.

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